A Bolted-on Approach
In continuation to our previous post on rule #1 of digital disruption, i.e., Adapting to the changing world, we are up to discuss on rule #2 in the series. In this blog, we are going to uncover the “Incremental Innovation with a Bolted-on Approach” which is scripted as rule #2 of digital disruption by Ravi Reddy, CEO, SuneraTech.
A bolt-on business approach or incremental innovation is one that you create or add to embrace new technologies. Incremental innovation is a bolt-on and not bold innovation. Incremental innovation is usually comprehended as improvement of technology performance or product feature enhancement.
Organizations are continually launching or utilizing several game-changing products, but increasingly are concentrating on subtle improvements. Innovation—the process through which companies think of and develop novel products and services—does not have to result in massive departures from business or product norms to make an impact. Companies that spend less on R&D and more on marginal improvements to existing products tend to be more fruitful than those that specialize in ground-breaking innovations.
Incremental innovation embraces this principle, and corporations can utilize it for retaining customers, remaining relevant, and balancing their innovation portfolios. Here is what you need to understand this small but mighty sort of innovation and why it is a valuable tool for companies of all sizes.
For instance, a bank is offering a scanning service of check book with a mobile app. So, here instead of scanning the check book if a new automated technology replaces this scanning option, i.e., by completely displacing the checking service, then the company is claimed to be in sync with embracing technologies.
Here the basic app design remains the same yet embraced the incremental innovation and provided the upgraded version of App at a standard rhythm with improved features. A small gesture, i.e., a Bolted-on Approach, is vital for companies to offer this kind of user-friendly services to the customers to remain ahead in the race.
Instead of pouring all efforts into creating innovations, companies would be wise to invest their research and development budgets to incremental innovation. Consumers typically adopt and purchase slightly upgraded products more readily than new ones, providing businesses with an infusion of cash that will sustain them as they work towards more revolutionary products.
Through incremental innovation, companies can retain their market share and customers while remaining relevant in a sea of competitors. A complete revamping of an established product will lead to failure. A small addition of the new technique to the popular product can attract the customers and help the brand stand out in the competition. A relatively short amount of time and money is required to update a product/service. A constant update of the products is significant for businesses because many rival companies exploit and pull away from your existing customers in no time. So, it is the top priority of the organizations to make small gestures towards embracing a new technology called Bolted-on-Approach.
To wind up, incremental innovations allow businesses to stay in front of buyers while taking on smaller risks that, if unsuccessful, pose less of a financial concern than a more radical shift would. Radical innovations play a crucial role in a company strategy but upgrading or embracing innovations will keep the company ahead of the curve. Incremental innovation may be lower risk and require less capital. However, you will still need reliable support systems and an organizational culture that rewards creative thinking for executing it effectively.
Let us discus some insights on the third rule under digital disruption, i.e., “How to embrace uncertainties in the digital world” in our next blog post in the series.